World Fuel Services 2005 Annual Report Download - page 40

accrued compensation expenses, partially offset by a decrease in customer deposits. Short-term and long-term
debt decreased by $30.8 million, primarily due to net repayments of $30.0 million under our revolving credit
facility.
Stockholders’ equity amounted to $353.3 million at December 31, 2005, as compared to $188.5 million at
December 31, 2004. The increase in stockholders’ equity of $164.8 million was mainly due to net proceeds of
$120.3 million from the public offering of our common stock and $39.6 million in earnings, $5.1 million in
exercise of stock options and related income tax benefit, and $4.0 million amortization of unearned deferred
compensation, partially offset by the declaration of dividends.
We believe that available funds from existing cash and cash equivalents and our credit facility, together with
cash flows generated by operations will be sufficient to fund our working capital and capital expenditure
requirements for the next twelve months. Our opinions concerning liquidity and our ability to obtain financing
are based on currently available information. To the extent this information proves to be inaccurate, or if
circumstances change, future availability of trade credit or other sources of financing may be reduced and our
liquidity would be adversely affected. Factors that may affect the availability of trade credit, or other financing,
include our performance (as measured by various factors including cash provided from operating activities), the
state of worldwide credit markets, and our levels of outstanding debt. In addition, we may decide to raise
additional funds to respond to competitive pressures or changes in market conditions, to fund future growth, or to
acquire businesses. We cannot guarantee that financing will be available when needed or desired on terms
favorable to us.
Contractual Obligations and Off-Balance Sheet Arrangements
Our significant contractual obligations and off-balance sheet arrangements are set forth below. For
additional information on any of the following and other contractual obligations and off-balance sheet
arrangements, see Notes 2 and 5 in the notes to the consolidated financial statements in Item 15 of this Form
10-K.
Contractual Obligations
As of December 31, 2005, our scheduled maturities of debt, lease commitments under non-cancelable
operating leases and the approximate future minimum commitments under employment agreements, excluding
discretionary and performance bonuses, were as follows (in thousands):
Total
Less than
1 year 1-3 years
3-5
years
More than
5 years
Debt obligations ................... $ 20,743 $ 737 $ 6 $20,000 $ —
Operating lease obligations ........... 12,590 3,126 4,168 3,156 2,140
Employment agreement obligations .... 17,589 10,325 6,060 1,204 —
Derivative obligations ............... 22,128 22,128 — — —
Purchase obligations ................ 227,061 227,061 — — —
Other long-term liabilities obligations . . 5,092 — 2,850 1,847 395
Total ........................ $305,203 $263,377 $13,084 $26,207 $2,535
Derivatives. See Item 7A—“Quantitative and Qualitative Disclosures About Market Risk” included in this
Form 10-K, for discussions of our derivatives.
Off-Balance Sheet Arrangements
Letters of Credit. In the normal course of business, we are required to provide letters of credit to certain
suppliers. A majority of these letters of credit expire within one year from their issuance, and expired letters of
26